Companies: ACL   

Technology distribution group Acal hiked the dividend 4.5%, despite recording falling sales and profits in the year to March. Sales fell to £269m (£272m) and profit before goodwill and exceptionals dropped 18.6% to £12.7m (£15.6m), with the shortfall coming from continental Europe. UK profits were maintained on a like-for-like basis. Though the figures disappointed, Acal, which focuses on electronic and industrial components, IT products and IT parts services, says this was a 'good return on trading assets'. The Surrey-based venture also managed to boost gross margins to 26% (24.8%) after selling its low-margin Cisco business and buying a higher-margin one, Computer Parts International (CPI). Encouragingly, gross margins either held up or rose in all divisions, partly compensating for the shrinking top line. Furthermore, chairman John Curry, who argued Acal was 'just on the turn' at the half year, insists 'year-on-year order decline ceased six months ago'. After a long period of shrinking sales, 'there are signs of... order growth' and Acal has snared some key supplier wins to fuel growth. The total dividend lifts from 20.1p to 21p, but overall, nothing much to get excited about in these results.